Global S&T Development Trend Analysis Platform of Resources and Environment
DOI | 10.1029/2019WR026443 |
Insurance Portfolio Diversification Through Bundling for Competing Agents Exposed to Uncorrelated Drought and Flood Risks | |
Denaro, Simona1,2; Castelletti, Andrea3; Giuliani, Matteo3; Characklis, Gregory1,2 | |
2020-05-01 | |
发表期刊 | WATER RESOURCES RESEARCH
![]() |
ISSN | 0043-1397 |
EISSN | 1944-7973 |
出版年 | 2020 |
卷号 | 56期号:5 |
文章类型 | Article |
语种 | 英语 |
国家 | USA; Italy |
英文摘要 | Worldwide, conflict over shared water resources is exacerbated by population growth, economic development, and climate change. In multipurpose water systems, stakeholders can face higher financial risks as a consequence of the higher costs or lower revenues arising from increased hydrological variability and recurrent extreme events. In this context, financial risk hedging tools able to bundle together the uncorrelated risks of wet and dry periods faced by different stakeholders may be an improved solution to both foster cooperation and manage the financial losses associated with extreme events. In this work, we explore the potential of risk diversification strategies, involving an index insurance contract solution, to simultaneously manage financial risk in a multipurpose water system prone to both drought and flood risk. Risk diversification can allow for reduced insurance premiums in situations in which the bundled risks are uncorrelated. Using an integrated operational and financial model, we characterize the financial risk associated with the water management policies and design a risk management strategy that bundles together the uncorrelated risk of drought and flood events. The approach is demonstrated using a case study on Lake Maggiore, a subalpine transboundary regulated lake whose management is controversial due to numerous and competing human activities. In particular, we focus on the ongoing conflict among the lake shore population, affected by flood risk, and the downstream farmers' districts, facing drought related losses. Results indicate that bundling uncorrelated risks from competing users is beneficial to both promoting insurance premium affordability and facilitating collaboration schemes at the catchment scale. |
英文关键词 | risk diversification index insurance cooperation floods droughts |
领域 | 资源环境 |
收录类别 | SCI-E ; SSCI |
WOS记录号 | WOS:000537736400031 |
WOS关键词 | CLIMATE-CHANGE ; WATER ; LOSSES ; MANAGEMENT ; CONFLICTS ; SECURITY ; IMPACTS ; WEATHER ; GROWTH ; PRICE |
WOS类目 | Environmental Sciences ; Limnology ; Water Resources |
WOS研究方向 | Environmental Sciences & Ecology ; Marine & Freshwater Biology ; Water Resources |
引用统计 | |
文献类型 | 期刊论文 |
条目标识符 | http://119.78.100.173/C666/handle/2XK7JSWQ/280664 |
专题 | 资源环境科学 |
作者单位 | 1.Univ North Carolina Chapel Hill, Gillings Sch Global Publ Hlth, Dept Environm Sci & Engn, Chapel Hill, NC 27599 USA; 2.Univ North Carolina Chapel Hill, UNC Inst Environm, Gillings Sch Global Publ Hlth, Ctr Financial Risk Environm Syst, Chapel Hill, NC 27599 USA; 3.Politecn Milan, Dept Elect Informat & Bioengn, Milan, Italy |
推荐引用方式 GB/T 7714 | Denaro, Simona,Castelletti, Andrea,Giuliani, Matteo,et al. Insurance Portfolio Diversification Through Bundling for Competing Agents Exposed to Uncorrelated Drought and Flood Risks[J]. WATER RESOURCES RESEARCH,2020,56(5). |
APA | Denaro, Simona,Castelletti, Andrea,Giuliani, Matteo,&Characklis, Gregory.(2020).Insurance Portfolio Diversification Through Bundling for Competing Agents Exposed to Uncorrelated Drought and Flood Risks.WATER RESOURCES RESEARCH,56(5). |
MLA | Denaro, Simona,et al."Insurance Portfolio Diversification Through Bundling for Competing Agents Exposed to Uncorrelated Drought and Flood Risks".WATER RESOURCES RESEARCH 56.5(2020). |
条目包含的文件 | 条目无相关文件。 |
除非特别说明,本系统中所有内容都受版权保护,并保留所有权利。
修改评论